Organization design that is delegated to divisions or companies

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Organization Design

From the organization chart that shown above can be divided analyze 2 parts.

SCG organization structure in the hole company.

SCG Cement or Siam cement company limited in term of each divisions such as cement plants and SGG cement R&D.

SCG organization structure in the whole company

Organic organization structure : SCG organization structure in the whole company was widely and flat. It is decentralize organization design that is delegated to divisions or companies separated by sources of production, functions, managers and workers to less levels in organization. From delegating authority, managers can reduce the complex communication and coordination problems because the top of organization can make decision from information that does not have continually send. Moreover, the employee at lower levels are given the right to make important decision. This is one of the best way to build empower and influent participated from the employee. This organization style similar to Organic organization. Because of tasks are different from the line of products, so specialists each responsible for one or few tasks are able to respond quickly. The organic structure can process and distribute information and knowledge faster within the organization, which thus results in an increased ability to respond or react to change in the environment.

SCG cement plant and SCG cement R&D

Organization structure

SCG cement

Mechanic organization design : The organization structure of cement plants is a Mechanic design. The tasks will not be differentiated much, because each subtask is relative stable and easy to control. All process of tasks have procedure describe task characteristics, employee can run their job follow the procedure with step by step. Due to the stability of task, there will be low integration between department and function areas, because the function areas are not heavily dependent on each other.

High formalization : When the environment is stable, there is no need for complex decision-making that involve people at lower levels. Therefore, decision making is centralized at the top of the organization it's mean plants manager. Many of the day-to-day decisions and operating procedure may be standardized and formalized, because there is no inherent need for constant change or innovation. Also the tasks should be, so that operation can run smoothly without breakdowns.

Level of communication : in the cement plant, the information is a vertical flow. Base on job procedure, It has divided level process of task, that mean information provided by step.

Technology use are low: Mostly, the tasks are routine, all employees are work at the same duty.

SCG cement R&D

Organic organization design : The organization structure of cement R&D is an Organic design, that better for innovation. It is opposite from cement plant. Due to job characteristics are different, there are created task or increase new knowledge, Its often changing and may need to be differentiated.

Low formalization ; When tasks change rapidly, it is unfeasible to institute standardization and formalized procedures. Instead, tasks should be mutually adjusted, so that each subtask is balanced with other subtasks.

Level of communication ; SCG cement R&D, The information is a horizontal flow. Communication in this sector is generally faster, more reliable, and is usually more effective. Because the staff has direct input into the business, there is less likelihood of behind-the-scenes fighting and disagreement. Staff will usually get onboard with new decisions much quicker due to the fact that they've been able to provide input.

Technology use are high :

II Leadership

Focus on CEO and Cement Plant Manager

Mr.Kan Trakulhoon, he is a president and CEO of SCG

Kan Trakulhoon, leads a new generation of progressive management team with a pivotal goal of developing SCG into a leading innovative organization.

Since 1977 when he first joined SCG, Kan has held several key positions in the Group, including executive vice president of a joint venture with Indonesia's leading petrochemical (Aromatics) company - where he successfully spearheaded the establishment of one of the largest petrochemical plants in Asia, Executive Vice President and CFO of the Siam Cement Public Company Limited

While being president of Cementhai Ceramics Co.Ltd., Kan played a crucial role in recovering the ailing ceramic business from the Asian economic crisis in 1997 and transforming the company into a long-term profit-making unit of SCG through strategic re-branding of commodity goods into value added fashionable products.

In the business world, strategy leaders have to effective because without that all strategies cannot be formulated and implemented for the purpose of achieving. Broad of SCG are recognized in this point , Kan Trakulhoon were promoted to CEO and president. The role of CEO during the company face on economic crisis is challenged to him prove his status. He has been working for SCG since 1977 , his 34 years experience enable him inside fully understand operation and constraint of the company. This is an advantage for him to manage all situations that occur to the company.

There are three major styles of leadership : Authoritarian, Participative and Delegative. By characteristics of Kan to be leader of Participative style. It's define as group members are involved in the decision making process right from the start, by contributing their ideas and suggestions. He is a strong believer in team work.

The characteristics

R&D spending : in the organization SCG pay high investment to research and development not only production line but also inside organization provide continuous improvement. There are build organization by Learning organization. These mean there exists a shared vision which everyone agree on. People discard their old ways of thinking and the standard routines they use for solving problems or doing their jobs. Members think of all organizational processes, activities, functions, and interactions with the environment as part of a system of interrelationships. People openly communicate with each other across vertical and horizontal boundaries without fear of criticism or punishment. People sublimate their personal interest and fragmented departmental interests to work together to achieve the organization's shared vision.

Innovation Level : From leading of CEO SCG focus on innovation for sustainability, innovative culture as foundation stage to high value products and service.

Flexibility Needs : Flexibility and adaptability in not being bound by a plan are important success factors in leadership. The leader must move easily from one set of circumstances the plan to the next plan is not going as expected and take them all in stride, even when the circumstances are unexpected. The good leader has to embrace change and see it as opportunity. The leadership skill of adaptability is another example of a critical skill.

Communication : Communication is one of the most key elements of leadership. Good communication skills need to be learned to effectively become a good leader or manager. When communication occurs, CEO SCG will be able to accurately convey the ideas and thoughts to those that work for company. If employees have no idea what is on leader mind. If there is a problem a certain employee is experiencing, good communication can filter the problem out. The president can dissect the problem and offer solutions in various ways. Ideas that are given to employees work both ways, as well. Employees can give helpful feedback and generate new ideas to their leader that help the company as well, when good communication is present.  Leaders need to learn to be proficient in both the communication that informs and seeks out information and the communication that connects interpersonally with others.

Cement Plant Manager

Authoritarian style : this style is normally used when leaders tell their employees or followers what the leaders want to be done and how they want it to be accomplished, without getting any advices or comments from their followers which sometimes could probably be helpful.

The different role between CEO and Plant manager are build different style of leader ship. In role of Plant manager need to monitor and control all operation to achieve the target. The characteristic of Cement Plant Manager lead to Authoritarian style. According to line production have to precise, if not it may cause of damage on operation or unsafely for employment. Thus, decision making in emergency situation made by only plant manager.

R&D spending : in cement plan, employee can work follow procedure, also job characteristics are explicit. Cost of R&D spending in lower.

Communication : the information is vertical flow base on hierarchies of work process.

Flexible need : Operation control cannot flexible because something wrong happen it mean loss occur in the system or company. This leader style have to low flexibility.